Lining up EV launches to attack diff price segments, expand Chetak brand: Bajaj Auto

Pune-based two-wheeler maker Bajaj Auto is gearing up to expand its electric scooter brand Chetak with a number of new product introductions to address various price segments and user groups as the company's research and development efforts fructify to help it build products with lower cost structures, a senior company executive said on Wednesday. Beginning March and spread over the next 12-15 months, the company will launch products every quarter.

The company will launch a "reconfigured", low-cost variant of the Chetak scooter in the market, along with various other products that will address the entire spectrum of the two-wheeler market from a low-speed delivery vehicle to a premium two-wheeler, where the existing Chetak EV is currently positioned, Rakesh Sharma, Executive Director, Bajaj Auto, told Mint.

The Chetak, along with Hero MotoCorp's Vida are the most expensive e-scooter offerings in the market at present.

Bajaj Auto is focussing on building up its supply chain, R&D capability, as well as dedicated Chetak showrooms across major cities. "We are currently on course with our plans for the Chetak, buttoning down our supply chain and reconfiguring the product to have a lower cost, which will enable a much faster ramp-up between now and through 2024", Sharma said.

"We have the depth in our pocket and a product that enjoys a premium position at the top of the market. Supply chain constraint solved, it is very easy for us to drop the price and garner volumes. Our main focus is working on a configuration of product which allows it to be a sustainable offering. We must prepare ourselves now for when the FAME-II subsidy goes away or reduces and all of our R&D effort has been in configuring the internals of the product. The emphasis has to be build R&D to help us to cut costs to build a portfolio of products and ensure robustness in the supply chain", Sharma told Mint.

Bajaj Auto currently manufacturers anywhere from 3000-3500 electric scooters a month. Going forward, Bajaj Auto also aims for its EVs to appeal to different demographics such as women and youth in a more distinct and sharper way.

"We have reached a certain level where we feel we'll see expression in the market. We may do 5000 a month in the next quarter, and add another 50% in next quarter. You'll see very healthy growth. We've reached a level where we are happy with our cost structures to attack the market vigorously and attack more product segments", he added.

"This will start playing out in next 12-15 months time in intervals of every quarter. Beginning march to whole of 2024 will be a slew of product launches to expand the Chetak portfolio to attack different price segments and user groups", according to Sharma.

The company also has good visibility in terms of semi-conductor chips needed for the manufacturing of the Chetak EVs.

Bajaj Auto on Wednesday reported that its third-quarter net profit for fiscal year 2023 exceeded expectations, due to robust domestic sales and higher prices for its motorcycles and scooters offsetting weak exports. The company's standalone net profit for the quarter ending December 31, 2022 was ₹1,491.42 crore, a 22.8% increase from the same period the previous year. This compares to a net profit of ₹1,214 crore in the same period in 2021.